Company Press Release

LUFKIN INDUSTRIES, INC. COMPLETES ACQUISITION OF NABLA CORPORATION

LUFKIN, Texas--(BUSINESS WIRE)--Sept. 2, 1997--Lufkin Industries, Inc. (Nasdaq/NM: LUFK) today announced that it has acquired Nabla Corporation of Midland, Texas. Nabla provides oilfield technical services including analysis for oil wells, developing software for oilfield engineers to design artificial lift systems, manufacturing devices for oilfield automation, and training for engineers. Nabla, which had sales of approximately $2.5 million for the year ended December 31, 1996, operates throughout most oilfields in the United States, as well as Venezuela, Canada and Columbia. The company will operate as a separate division of Lufkin Industries.

"Nabla is a world leader in its business with a number of active patents and will enhance Lufkin's already strong reputation for quality in the industry," said Douglas V. Smith, president and chief executive officer for Lufkin Industries. "Nabla's principal owners, Dr. S.E. Gibbs and K.B. Nolen, will remain with the company in different roles. Nolen will become a Lufkin Industries manager and Gibbs will serve as a consultant. Gibbs, a native of Lufkin, is world-recognized in his field. As a consultant, he will help Lufkin develop new technologies. With its strong reputation, Nabla has excellent prospects for growth; and we believe it will add to Lufkin's oilfield-related business," concluded Smith.

Lufkin Industries, Inc. is one of the world's leading producers of oilfield pumping units, power transmission products, foundry castings, and truck trailers.

     Lufkin Industries Inc., Lufkin
     C. James Haley Jr., 936/637-5555